Deal to eliminate US tariffs on UK steel put on hold

The United Kingdom government has reportedly halted efforts to negotiate Section 232 tariffs down to zero, leaving the rate at 25% for US imports of UK steel. The UK is currently the only country with a 25% rate—all others are subject to a 50% tariff rate.

A proposed deal ahead of Donald Trump’s visit to the UK this week has been shelved indefinitely, as ministers who were set to finalize a new tariff rate said the deal would have only secured 0% tariffs for a minimal quota of steel shipments, which they said would prolong uncertainty in the UK steel industry.

Ministers are reportedly seeking a permanent guarantee that tariffs on British steel exports will not exceed 25%. In June, the US and UK signed a trade deal that reduced tariffs on auto and aerospace imports to the US, but a proposal to reduce steel tariffs down to zero was put on hold due to reported concerns about circumvention from other steel-producing countries.

Trump reportedly hinted at further tariff relief ahead of his arrival in the UK on 16 September: “We’ve made a deal, and it’s a great deal, and I’m into helping them,” he said to news outlets.

In response, a UK government spokesperson issued a statement that said Britain is “continuing to work closely with the US to deliver certainty for UK industry, protect skilled jobs and support economic growth.”

The director general of UK Steel, Gareth Stace, commented to news outlets that it is “disappointing” to not have a tariff-free quota level by now, noting that it is “even more imperative now that the UK government beefs up its own trade defenses to ensure UK steelmakers have a sustainable share of their own market. In these market conditions, the last country to protect their industry will be the first to lose it.”

Steel shipments to the US comprise around 6% of all UK steel exports. For the full-year 2024, imports of steel from the UK accounted for around 0.9% of total US steel imports. Year-to-date (as of July 2025), UK steel is around 0.8% of all US steel imports.

Katie Memmel Principal Research Analyst, Ferrous Scrap North America